HELPS IN INFO GATHER

1. Assignments Name.
Q.EXPLAIN THE ROLES AND RESPONSIBILITIES OF A BUSINESS
MANAGER
NAME OF STUDENT : ROHIT HARI CHAUBEY
CLASS : B.COM 12
SUBJECT : MANAGERIAL ECONOMICS
ROLL NO :202 (STUDENT ID)
GUIDE TEACHER :DR. J .R. SAHASRABUDHHE SIR
INTRODUCTION:
Managerial economics is a stream of management studies that
emphasizes primarily solving business problems and
decision-making by applying the theories and principles of
microeconomics and macroeconomics. It is a specialized stream
dealing with an organization's internal issues by using various
economic theories.Managerial economics is a branch of economics
involving the application of economic methods in the managerial
decision-making process. Managerial economics aims to provide a
framework for decision making which are directed to maximise the
profits and outcomes of a company.

2. ● Definitions :
1.According to Joel Dean - “The purpose of Managerial Economics
is to show how economic analysis can be used in formulating and
it bridges the gap between traditional economic theory and real
business practices in two ways.
2.According to Prof. Evan J Douglas, Managerial economics is
concerned with the application of business principles and
methodologies to the decision making process within the firm or
organization under the conditions of uncertainty.
3.According to Michael Baye,” - Managerial Economics is the
study of how to direct scarce resources in a way that mostly
effectively achieves a managerial goal”.
4.W. W. Haynes “Managerial Economics is economics applied in
decision-making. It is a special branch of economics bridging the
gap between economic theory and managerial practice. Itsstress is
on the use of the tools of economic analysis in clarifying problems
in organizing and evaluating information and in comparing
alternative courses of action.”
Business Manager:
MEANING:Managerial economist is a person who manages
business efficiently using various economic theories and
methodologies. He supports the management team in better
decision making through his analytical skills and specialized
techniques.

3. A Managerial Economist is also termed as an economic advisor or
business economist. He is responsible for analyzing various
internal and external environmental forces that influence the
functioning of business organizations. Managerial economist
makes several successful business forecasts and updatesthe
management team regarding the economic trends from time to
time.Managerial Economist always remains in touch with all the
latest economic developments and environmental changes for
informing the management. He has an efficient role in earning
reasonable profits on invested capital as it supplies all relevant
information which helps in making proper plans and strategies.
Managerial economist has three important roles in every business
organization: Demand analysis and forecasting, capital
management and profit management.
Role profile:
In many businesses, the role may be established to relieve the
owner of responsibility, in order to focus on specific aspects of
company expansion. Typically, the business manager and the
owner may work in synergy to ensure successful running of
business. Having a specialization in a particular field, such as sales,
marketing, public relations or finance aids in efficiency, yet despite
the usual academic qualities of a business manager, business
managers also develop personal qualities that are helpful in
performing the role efficiently.

4. A social skill of a business manager is the ability to understand and
know what each of their subordinate employee's tasks are and
how to work with each employee in working toward successful
completion of such tasks.A business manager should be willing to
accept constructive advice from employees, develop social skills,
be organized, honest and able to make good decisions. A good
business manager should be willing to work along his or her
employees in order to create a better work environment
Areas for decision making for business manager:
● Selection of product.
● Selection of suitable product mix.
● Selection of method of production.
● Product line decision.
● Determination of price and quantity.
● Decision on promotional strategy.
● Optimum input combination.
● Allocation of resources.
● Replacement decision.
● Make or buy decisions.
● Shut down decision.
● Decision on export and import.
● Location decision.
● Capital budgeting.
Role and Responsibilities of Business Manager:

5. Role and Responsibilities of Managerial Economist
1.Studies Business Environment:The managerial economics
responsible for analyzing the environment in which business operates.
Proper study of all external factors that affect the functioning of an
organization is must for proper functioning. He studies various factors
like growth of national income, competition level, price trends,phase of
the business cycle and economy and updates the management
regarding it from time to time.
2.Analyses Operations Of Business:
He analyses the internal operation of business and helps
management in making better decisions in regard to internal workings.
Managerial economist through his analytical and forecasting skills
provides advice to managers for formulating policies regarding internal
operations of the business.
3.Demand Forecasting And Estimation:
Proper estimation and forecasting of future trends helps the business
in achieving desired profitability and growth. Managerial economist
through proper study of all internal and external forces makes
successful forecasting of future uncertainties or trends.
4.Production Planning:
Managerial economist is responsible for scheduling all production
activities of a business. Heevaluates the capital budgets organizations
and accordingly helps in deciding timing and locating of various
actions.
5.Economic Intelligence:

6. He provides economic intelligence services by communicating all
economic information tomanagement. Managerial economist keeps
management always updated of all prevailing economic trends so that
they can confidently talk in seminars and conferences.
6. Performing Investment Analysis:
A managerial economist analyzes various investment avenues and
chooses the most appropriate one. He studies and discovers new
possible fields of business for earning better returns.
7.Focuses On Earning Reasonable Profit:
He assists management in earning a reasonable rate of profit on
capital employed in the business. Managerial economists monitor
activities of organizations to check whether all operations are running
efficiently as per the plans and policies.
8.Maintaining Better Relations:
A managerial economist maintains better relations with all internal and
external individuals connected with the business. It is his duty to
develop a peaceful and cooperative environment within the
organization and aims to reduce any opposition taking place.